After more than four decades of repressive rule under Muammar Gaddafi, opposition fighters in Libya have been successful in overthrowing the authoritarian dictator and setting up a more open, democratic society. Though still in its infancy, the new system has shown potential, drawing upon Libya’s valuable natural resources and fairly educated population. Unfortunately, the future is not all roses. The uprising has largely stagnated the Libyan economy, causing a slowdown in industries across the board and a general sense of uncertainty. Libya plans to address this problem, however, in a way that you may not expect.

When one thinks of vacation spots, sandy beaches and warm sunshine probably come to mind— not the dry, wildly varying climate of Libya. A full-fledged promotion of tourism, however, is exactly what the country plans to put into motion. Officials hope that an influx of tourists can help the country take a big step towards economic recovery.

This is not the first time that the country has made an effort to promote tourism. In the early 2000s, the Gaddafi regime introduced legislation that called for increased focus on the tourism sector of the Libyan economy. Their initiatives morphed into a nationally funded, erratic approach that had little to no foreign investment and led to limited growth.

Libya can also take note of Costa Rica, a country known for its tourism that has deftly handled foreign investment. Costa Rica has established the Costa Rica Investment Promotion Agency (CINDE), an organization that, among other duties, matches potential investors with attractive opportunities in the tourism industry. There are also numerous examples of investment success stories in Costa Rica even in times of economic uncertainty, a situation that Libya obviously faces now. Perhaps Libya could establish a similar agency that can aid in both finding appealing investment opportunities and matching them with potential suitors. By modeling some aspects of its tourism industry after Costa Rica’s, Libya could potentially have a little bit of its own success.

Although Libya seems to be on the right track with regards to economic growth through tourism, it does still face some hurdles. The number of flights coming into the country is low because of runways damaged from the conflict, and general uncertainty about safety remains high. However, if Libya continues to

Source: guardian.co.uk

encourage investments and takes a lesson or two from Costa Rica, the tourism industry holds the potential for serious growth. With its rich history, unique climate, and wealth of archeological sites, Libya could serve as an attractive alternative to the typical beach vacation.

The Center for Global Prosperity is focused on educating policy leaders and the general public on the crucial role of the private sector (both non and for profit) as a source of economic growth and prosperity around the world. To accomplish this central mission, the Center produces The Index of Global Philanthropy and Remittances, which identifies the sources and amounts of private giving around the world and The Index of Philanthropic Freedom, which identifies the barriers and incentives to private giving in 64 countries.